Goodwill is partnering with OfferUp, a mobile marketplace for local buyers and sellers, to bring its extensive inventory of donated new and gently used furniture, clothing and collectibles to the platform’s 44 million annual users.
More than 100 Goodwill locations in New York, New Jersey, San Francisco, San Mateo and Marin Counties in California, South Florida, San Antonio, Greater Detroit and Central and Southern Indiana are participating, and will directly upload their products to OfferUp in an effort to increase sales online and in stores.
The partnership is being powered by OfferUp’s API, which is in beta test mode, and Upright Labs’ Lister software, which helps secondhand retailers streamline their e-commerce operations while listing inventory on multiple online marketplaces with a tool that lists and sells products where their customers are actively shopping. Goodwill employees will also be able to track inventory and will get real-time insights about the flow of products while managing orders from listings to product images to order management.
Goodwill is using OfferUp to attract a broader customer base, increase in-store traffic and boost e-commerce sales. The partnership promotes sustainability and reuse by creating the opportunity for many more people to have access to the secondhand items in order to give them new life.
“OfferUp’s customers — it’s a little bit of everybody,” said Natalie Angelillo, vice president of community. “Over 15 percent of adult users in top markets such as Seattle, Miami and Los Angeles use it every month. Over 50 percent of our users are Millennials, who care about sustainability. Their lives are always on the go and they’re always on their smartphones.”
Angelillo said the Goodwill’s relationship with OfferUp is “a good example of how the traditional or legacy retailer is seeking new opportunities to reach a larger, engaged audience of customers.”
OfferUp has no financial agreement with Goodwill. If a user purchases a product from a Goodwill location’s profile, the buyer can go to the store and pay cash without being subjected to any fees. OfferUp charges buyers a 9.9 percent fee for shipping within the contiguous 48 states of the U.S.
“The only time money changes hands is if an item is shipped,” Angelillo said.
OfferUp completed $14 billion worth of transactions in its first five years. Due to its size — the app has been downloaded 80 million times — the platform can’t help but notice trends. Funko bobbleheads and white sneakers are everywhere, Angelillo said. The site offers tabs for Burberry, Gucci, Michael Kors and Supreme, along with prom dresses, Jordan1 and Bape.
“Goodwill could see the same thing trending,” Angelillo said. “They’re counting on us to be a majority distribution channel for them. Goodwill will have the ability to be a verified business badge, and they can bring over their ratings in the app and Google reviews.”
“Each month, we list thousands of secondhand items online and we’re excited to be able to bring them to the OfferUp community,” said Joseph Jarroush, vice president of operations at Goodwill of New York and New Jersey. “Revenue from our 37 stores and e-commerce business supports our mission. In 2018, we helped 2,351 people get jobs outside of our stores, including 843 individuals with disabilities.”
OfferUp has partnered with independent, one-off stores for the last few years. The Goodwill partnership is its biggest with a retailer to date. “This is just the beginning of our partnerships with many other retail brands,” Angelillo said.